Florida Remains An Attractive Market For Buyers

According to  real estate website Zillow.com, homes in the United States have lost trillions of dollars in value during 2008 with nearly 11.7 American households now owning more on their mortgage than their homes are worth. U.S. homes are set to lose over $2 trillion in value during 2008, according to an analysis of recent Zillow Real Estate market Reports. Home values declined 8.4 percent year-over-year during the first three quarters, compared to the same period in 2007, the reports showed.

Dr. Stan Humphries, Zillow’s vice president of data and analytics, said in statement and publishers by Reuters that “this year marked the acceleration of the market correction, and is likely to end with the eighth consecutive quarter of declines in home values.” On the positive side, he noted, in the third quarter, some markets–particularly those hit hardest in the downturn – showed smaller year-over-year declines than in the prior quarter.

As a matter of fact, the U.S. housing market is suffering the worst downturn since the Great Depression because a huge supply of unsold homes, tighter lending standards and foreclosures happening in record numbers, push down home prices. There is a light at the end of a tunnel.  According to the Zillow Real Estate market Reports, thirty of the 163 metropolitan statistical areas showed gains in the Zillow Home value Index, or median value of all homes in the area, over the first three quarters of the year. It includes the Jacksonville, North Carolina region which saw year-over-year appreciation of 4.9 percent.

Until prices will continue to fall, and foreclosures will rise in numbers, and large mortgages will be “underwater,” the U.S. housing market has a huge impact and remains the largest unresolved issue for the global economy.

In the meantime, let’s look at the Florida real estate market. Miami-Dade, one of the most popular areas, is currently going through the worst condo bust cycle that Florida has seen since 1975. However, housing markets will return to normal during the next few years.

Palm Beach County has also seen better times, but it is still in much better shape than the Broward and Dade Counties, and Miami, where supply of newly built condominiums is higher than demand for these properties. In spite of it, buyers from all over the United States, Canada, European countries, and Latin America are still attracted to Florida, and not just because of the climate, or because it was and it is “the playground of the country.”

The Sunshine State has a strong job market, well developed tourism industry, and a ready supply of comfortable housing in all price ranges. In many oceanside communities prices don’t fall and hold to their value in part of the unique land and desirable location, and in part due to demand–beautiful, modern residences in South Florida offer great values for buyers worldwide, much better than in California or anywhere else.

Photo of Boca Marina, Palm Beach County, Florida by Argo Developers. Copyright 2009. All rights reserved.